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Housing and Community Development Organizations Boosted the Rural Economy by $380 Million and 40,000 Jobs in 2013

Press Release Infographicv2Today, the National Rural Housing Coalition (NRHC) published a new report, “Impact Report: The Economic and Human Impact of Nonprofit Organizations on Rural America,” summarizing the results of its annual survey of over 100 rural housing and community development organizations. The report estimates that in 2013 alone, nonprofit organizations generated $380 million in economic activity and created over 40,000 jobs in rural communities.

“This report documents not only the broad economic and human impact of nonprofit housing and community development organizations, but also the critical role of federal programs—particularly those administered by the U.S. Department of Agriculture (USDA)—in improving the quality of life in rural America,” said Bob Rapoza, executive secretary of the coalition.

According to the report, rural housing organizations secured $1.3 billion in low-cost mortgages in 2013 to help rural families build, purchase or rehabilitate 8,800 units of affordable housing. The most significant source of this financing was the USDA direct homeownership loan program, which has helped more than 2.1 million rural families become homeowners over the past 50 years. It is also one of most cost-effective federal housing programs; in 2014, each loan cost the government about $3,000 over the entire lifetime of the loan.

“With this program, rural housing organizations can bring hope to underserved, rural communities, one family at a time. No other federal housing program can achieve the same results at such a low cost,” explained NRHC board president, Tom Carew.

Despite the program’s successful track record and strong bipartisan support in Congress, the Obama Administration has proposed significant cuts to the program in recent years. USDA proposed cutting funding by more than 60 percent in 2014 from $900 million to $360 million. Moreover, the Department failed to spend $100 million in program funding as of year’s end. NRHC and others concerned about the lack of affordable housing in rural communities assert that USDA did not process applications in a timely fashion and that demand for rural housing assistance remains high.

Rapoza urges USDA to make rural housing programs and the nonprofit organizations that use them a higher priority.

“Nonprofit organizations have proven their ability to stretch limited federal dollars to make a real impact in rural America,” said Rapoza. “Given tight budgets, Congress and Administration should bolster rural communities by supporting these organizations—and the important programs they use—instead of reducing them.”